Over the last few weeks as the stock market has been holding onto, and even furthering its gains of the last couple of months the crude oil and gasoline futures prices have jumped higher. What does this mean? This means that very soon motorists can expect a pretty big hike in the price of gasoline. Crude oil futures gained almost $3 a barrel today and have now gained 32% on the year. Gasoline futures have had an even greater move to the upside. Just this afternoon gasoline futures hit their highest level since October 15th of last year. If you’ll remember, October 15th of last year was right in the middle of the terrible run for the stock market, so it is quite striking that gasoline prices have already reached that level.

What’s behind the climb in crude oil and gasoline prices? In the last few days in Nigeria a militant group is causing some significant unrest and is specifically targeting the country’s huge oil supply. Another reason is that many oil traders are beginning to believe that the massive sell off which took crude oil prices down into the 30′s late last year and early this year may have been overdone.

The biggest determinant for where crude oil and gasoline futures prices go in the short-term is probably the summer driving season. Will Americans do less traveling because of tight budgets or will they continue to fill up their gasoline tanks as normal? Most expect a decline in travel, but the rate of the decline is still to be determined.

Unfortunately the higher prices at the pump will mean increased costs to the consumer that really is in no position to take on higher costs at this point. It may not be what you want to hear right now, but the truth is, gas prices are on their way up.

A question that I hear quite a few Americans talking about throughout the week is the price of gasoline. Everyone is relieved that gasoline has come down by more than 50% off of its high of less than a year ago, but they are also wondering whether this drop is sustainable. Crude oil prices have now dropped below $40 a barrel and gasoline trades around $1.25 on the gasoline futures market at the time being.

What is behind the fall in oil and gasoline prices? The main reason for the drop in oil and gas prices is certainly the overall economic picture, which is obviously extremely bleak. There had been a strong bull market in oil because of strong global demand, but that demand has since waned significantly because of economic conditions. Simply put the average consumer is looking for a place to cut back on spending and transportation and fuel costs is one of the easiest to cut.

Was the huge rise in oil and gasoline prices over the last couple of years a blip and the recent drop is a return to normal or is the current drop a blip and when the economy returns to normal oil will once again gain steam? I think the answer lies somewhere between these two solutions. I would tend to think that global demand for oil and gasoline will strengthen quite nicely once again when the economic picture settles down, but part of the $147 oil was likely speculation that has been run out of the market for the time being.

In the end I think consumers should expect gas prices to stay low during the economic downturn, but I also think that consumers should try to enjoy the cheap gas prices while they can because once the economy turns around the price of gasoline is likely to rise once again.

Across the nation gasoline prices have been dropping like a rock of late. Just a month ago the average price at the pumps was about 80 cents higher than it is today, and about six months ago the average price per gallon of unleaded fuel was more than double today’s national average price of $1.89. It is basically the tiny glimmer of good news that consumers have gotten in the last few months as our economy seemingly comes crashing down right before our eyes.

Why have gas prices gone down so much? The reason crude oil and gasoline prices have come down so much is one of the main reasons the stock market has dropped so much, the fears of a massive global recession. Oil is far from immune to a large scale global recession and at this point it seems that oil traders are fearing the worst.

As you walk around the streets of America today you will hear a lot of people talking about the economy that normally would talk very little about the topic. It clearly is the in topic of the current time, and for good reason. The talk of gasoline prices plunging lower is spreading and many Americans are now faced with what to do with this new savings they are receiving each time they fill up at the pump. I suggest to you to be extremely conservative with the money that you save at the fuel pumps in the coming weeks and months. The fact that gas prices are coming down are comforting to consumers, but the real reason gas prices are coming down are truly not good for the overall economy and our nation’s economic well-being. American consumers would be far better off saving up that money and investing it into something simple like a savings account or cd rather than deciding this is the all clear to go back to driving much farther distances and not saving conserving fuel. Keep conserving the fuel and reaping the rewards of those savings, with the economic picture currently in place you can’t afford not to!